ITB Final Review study guide
The most important step in starting a business
Preparation
Last business organization in the indirect cannel of distribution.
Retailers
How many countries does the U.S. conduct trade with?
Roughly 180
A state or local tax on goods and services that is collected by the seller.
Sales tax
What does Property Taxes Revenue help the government pay for?
Schools, police protection, community parks.
Over the next ten years, all job growth in the U.S. will occur in ______ businesses.
Service
Entrepreneur
Someone who takes a risk in starting a business to earn a profit. They must organize and manage the business.
Production process
The activities, equipment, and resources needed to manufacture a product.
Start Up Financing
The amount of money needed to OPEN a business.
Exchange Rate
The balue of a currency in one country compared with the value in another country.
Iron curtain
The imaginary boundary dividing Europe into two separate areas from the end of WWll in 1945 until the end of the Cold War in 1991
Core values
The important principles that guide decisions and actions in a company.
Economic system
The method that a country uses to answer the three economic questions. (ex) Command, Market, Traditional, or Mixed.
What is capitalism?
The private ownership of resources b individuals rather than the government. The U.S. has this.
Buying motives
The reasons consumers decide what products and services to purchase.
Opportunity cost
This is the value of the next best alternative of an economic choice that you did not choose.
How long does copyright last?
To death + 70 years. 20 years as long as the company exists.
Human resources are different than almost every other resource needed by businesses. (true or false)
True
Nonprofit corporations do not have to pay corporate income taxes. (true or false)
True
Not all entrepreneurship opportunities emerge from inventions and innovations. (true or false)
True
Some countries limit the amount of money their citizens can take out of the country when they travel. (true or false)
True
Stan gets monthly social security checks from the government. This must be counted when measuring his personal income. (true or false)
True
The more goods and services produced, the healthier an economy is considered to be. (true or false)
True
The top management has a significant impact on the ethical conduct of a business. (true or false)
True
Cooperative
When a group of people combine to provide goods & services they all need. It's owned & managed by members.
Job showdowing
When a worker allows an interested person to spend time with them for a day or week to learn the occupation.
Consists of both physical conditions and the psychological atmosphere which employees work.
Work environment
personal time
a few hours each month that can be scheduled for non-job activities.
Labor union
an organized group of employees who negotiate with employers about issues, such as wages and working conditions
Written legal documents that define ownership and operating procedures for a corporation.
articles of incorporation
Selling price
combination of product cost + operating expenses + profit.
When a country has a favorable balance of payments, the value of its currency is usually ______.
constant or rising
If you buy a government or a corporate bond, you're considered to be a ________, because you are lending them money.
creditor
In the U.S, all people over the age of 21 who don't have a full-time, paying job are considered "unemployed". (true or false)
false
Businesses gain efficiency by producing ________.
large amounts of products at one time.
Supervisors often have ____
non-management duties in addition to their management work.
The final step in the hiring process is ______.
orientation process
Economic growth refers to a _______ _______ in the production of goods and services in an economic system.
steady increase
Retailers
the final business organization in an indirect channel of distribution for consumer products.
Managers are more likey to support decisions if _______.
they involve employees in decision-making.
A nation with a ________ ________ is said to have a favorable trade position.
trade surplus
It is considered acceptable for job applicants to ask questions during an employment interview. (true or false)
true
References should not be included at the end of a resume. (true or false)
true
Most business activities occur _______ a country's own borders.
within
The best way to tell an employer you're leaving your job is to ________.
write a short, polite letter of resignation.
What is the copyright symbol?
©
U.S. businesses with just a single owner and now staff account for over _______ in annual sales.
$600 billion
What percent of the US companies employ 100 or more workers?
1%
Corporation
A business that is formed to be a separate legal entity formed by documents filed with the state. It was a board of directors.
What does inflation do & who does it harm the most?
A general rise in prices. It mostly hurts people living on fixed incomes.
Strategic Management
A management style in which managers are more collaborative and involve employees in decision-making.
Observation
A marketing research study that collects data by recording the actions of consumers rather than asking questions.
Matrix organizational structure
A newer structure where work is structured around specific projects, products, or customer groups.
Formal influence
A personal power based on a leader's position within the formal structure of an organization.
Trade barrier
A restriction of free trade between countries.
What is a free-trade zone?
A selected area where products can be imported duty-free and then stored, assembled, or used in manufacturing.
Example of a capitol project
A small business that purchases two new pickup trucks.
What is a tariff?
A tax that a government places on certain imported products from other countries.
What is a "glass ceiling"?
An artificial limit placed on minority groups moving into positions of authority and decision-making.
Conflict of Interest
An occurrence or an action by a company or individual results in an unfair benefit.
_________ _________ are the recurring ups and downs of gross national product, where an economy moves from one economic condition to another and back again. The 4 stages are prosperity, recession, depression, & recovery.
Business cycles
What is another name for a mentor?
Career Coach
External communication
Communication with people or customers or businesses outside of your business.
______ refers to the government ownership of resources within a country. (ex) North Korea
Communism
A person who buys and uses goods and services is called a(n) _____.
Consumer
Making, buying, and selling goods and services within a countries boarder.
Domestic business
When you give up something to buy something else.
Economic tradeoff
All nations of the world do use the same banking system. (true or false)
False
White-collar workers are more important than blue-collar workers. . (true or false)
False
You have to live in a big city to be an entrepreneur. (true or false)
False
First job task
Filling out a job application
Exports
Goods and services sold to other countries.
_________ enables a person to affect the actions of others.
Influence
It (is or isn't) legal for businesses to screen applicants for skills and abilities in pre-employment tests.
Is
It (is or isn't) possible for the United States to have a trade surplus with one country and a trade deficit with another.
Is
When the price of a product increases, businesses are willing to produce _______ quantities of that product.
Larger
What is MNC? What does it represent?
Multi-national company. A company that places business in other countries. (ex) Nike and Coca-cola
Are successful entrepreneurs usually hesitant about decisions?
NO because they like immediate action, and can't afford to wait on decisions.
Things that are required in order to live are known as _____.
Needs
The typical length of time that most business plans are developed for. After that, they should be revised as needed.
One year
What is major advantage of a functional organizational structure?
People work directly with others who have the same skills.